Last time we checked in with boutique investment bank PJT Partners, things were going quite well. The firm had just boosted its revenues by 20% during the second quarter and was rewarding its employees for their efforts. Fast-forward three months and PJT Partners and its bankers have even more reason to celebrate. Revenues were up a massive 79% during Q3 as the firm’s advisory business nearly doubled the fees it generated compared to a year ago. PJT bankers are set up for a huge year.
As a smaller firm than other big-name boutiques like Evercore and Moelis, PJT Partners maintained a massive 73.6% compensation-to-revenue ratio through the first nine months of the year, more than 13 percentage points higher than at Evercore. With only around 520 employees, pay per head through three quarters is roughly $571k. Assuming a strong fourth quarter performance, the average PJT employee may take home just shy of $750k for the year. In comparison, pay-per-head through the first nine months of the year at Evercore stands at $437k.
Of course, not everyone at PJT will be earning three-quarters of a million dollars this year. The biggest slice of the pie will go to its partners, of which there were only 34 as of the end of September. They should be particularly jolly come the holidays.
While somewhat diminutive compared to other boutiques, PJT is still relatively new and continues to hire aggressively. The firm had around 470 employees at the end of 2017, meaning it has increased headcount by roughly 50 over the first three quarters of the year, including the addition of seven new partners. Now appears a great time to get your foot in the door at PJT, though it will take some effort. The firm finished atop a recent ranking of the investment banks with the hardest interviews. Boutiques accounted for the top seven spots on the list.
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